TomTom trading and full year outlook update

TomTom today updates the market on trading.

Consumer electronics markets have been weak over recent weeks and this trend is ongoing. The size of the European PND market is broadly as anticipated and for the year as a whole is expected to decline by around 10%. However more consumers are opting for entry level products than expected and lower levels of inventory are being held in the channel. The North American PND market is experiencing a faster rate of decline than earlier in the year and we now expect this market to be down by about 30% for the year as a whole.

The Automotive, Business Solutions and Licensing businesses are developing as expected.

Hardware revenues are lower than planned because of weak PND sales; content and service revenues are on track.

We continue to invest in development and commercial activities to support our growth markets. Other discretionary spending is being aligned with the development of revenue.

As a result of these developments we now expect full year revenue of between €1,225 and €1,275 million and earnings per share of between €0.25 and €0.30.

Revenue for Q2 is expected to be between €300 and €310 million. Q2 results will be published on 22 July.